Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
) f, s" a5 O3 F2 f* ]companies producing Jet fuels but Biofuels. Also no wonder if some of
2 k1 \5 S# m, H  r$ A+ K' Rthese oil producer will go bankrupt or out of the business even if
crude prices improves. This implies also to good names such as Shell,
2 s+ Y$ e9 l+ F4 @: I# Y; gEXXON, BG, BP, Cheveron ....xyz.. oils

Recently OPEC reduced crude oil production twice over just a few
7 X7 m$ T- `' `months. There are three wars going on in Gaza, Iraq and Afghandistan.
A year ago these things would have spiked the price of crude oil by at
least $50.00 per barrel. Today, oil price declined by a record amount.


9 R  F% ^$ H. BThere are several reasons the price of oil is decreasing in the face
8 ^% g. P, k6 A$ Dof so much news. These reasons are:
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1. New oil has been found in Canada, Montana, North & South Dakota and
2 Y- t3 C4 N' W- ^6 nin the ocean near Brazil. Each of these oil fields has more oil than
Arabia.

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2. New natural gas has been found in Pennsylvania and West Virginia.
$ Y4 J1 Y- }- ]* V% PThis is the largest find in North America.
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3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.
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9 m* M# D$ L3 p8 P4. Production of bio-fuels is beginning to reach critical mass. Bio
fuel is being produced from many plants and algae. The production
. x8 H  T6 M- L2 i4 J3 Dpotential per acre in some cases is astounding. Many countries are
- v6 q$ {6 n4 {4 W; c4 V0 cracing to produce bio fuels.

& {# I% D4 j2 F# D
1 F' O2 _0 ]" K8 ?* K5. Virtually every restaurant in the US and all food processing plants
3 [2 }( X4 U5 |9 Vare now selling their used oil to bio-diesel producers. Every pork,
* y' h+ @, W% b) }. `8 |* i$ F8 ^cattle, turkey and chicken processing plant will soon sell their fat
to bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.


6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
- _, q4 U, |) O2 V/ W, W3 Y& y8 d& Aexpected to be built in the future. Much of the energy they produce
  L; M) ^& \! ~2 C" D' r, m4 ?will replace oil.


7. Every company in any form of transportaion business is replacing
8 [6 e3 A7 f. M7 ]; Iolder equipment such as trucks, airplanes, train engines, ships, etc.
' m' G& b$ Y6 ~3 F9 H( Mwith new more fuel efficient equipment. Airlines and railway companies
/ H# d" e8 \, H7 S& }! Zare experiencing 20% to 25% better fuel econony with the new
2 V1 z. H/ I9 U5 e7 \3 T# W! eequipment.


/ ^6 f$ N7 Q5 r2 t8 R& XAirlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.

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* q! |" G) a3 l  \8 p6 q8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
/ |# i" y  T  T; roil.
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1 G7 }+ L1 F" x( G% O3 D3 k9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
oil wells.


& @/ E5 l4 l/ i! j10. Solar, wind and ocean energy is displacing oil as an energy
source. Three new wind turbines are being erected every day in the US.
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8 B3 u: O) N$ b  [Each of the above by itself will not make a large difference in the
price of crude oil but the sum of all of them together is world
changing. The important thing is that OPEC no longer has the ability
7 [+ q3 x8 W' A0 {to control oil prices.
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2 j. r/ \  I9 n* e1 K2 r% D$ Z; T* B! m# wWith the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
value .....
; K8 x6 u9 Q9 j* KIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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The above articles are from WSJ .............PUBLISHED ON 9TH JAN
  k3 }! C+ Y: K8 l. Q' @# u2009 ... FYI-Only